J&K Bank case: ACB investigation finds irregularities in board approvals
Retrospective approval taken from board to 'favour' a bid by an insurance company.
The investigative agency has alleged that the ex-post facto approval was “facilitated” by Parvez Ahmed Nengroo, former chairman, J&K Bank, who was booked on charges of favouritism and alleged abuse of his official position as the bank’s chairman.
In its FIR registered last month, the ACB has alleged that “it has also come to fore that since an approval of the board of directors was needed in the said insurance deal, as such, a post facto approval was obtained in the matter, which was facilitated by Parvez Ahmed”. The FIR, accessed by ET, states that “during verification, it has surfaced that, though an eyewash process regarding selection of an insurance company was initiated, the then chairman, J&K Bank, has favoured the bidding insurance company, IFFCO Tokio, by managing award for higher points in its favour in the presentation part, so that his close relative Asif Manzoor Beigh and others could be appointed in the said insurance company at his behest”. The agency has alleged that the investigation has revealed that “due to the said insurance deal, the said beneficiary company has been conferred the business of insurance in Srinagar and Anantnag at the cost of J&K Bank resources and that of Bajaj Allianz Company Ltd which was already in arrangement with J&K Bank since 2002”.
To buttress its accusation of causing loss to the exchequer, the ACB has said in its FIR that verification has revealed that in the “first quarter of financial year 2018 to 2019, i.e April to June, J&K Bank received commission from Bajaj Alliance at Rs 159 lakh, whereas commission received from IFFCO TOKIO General insurance company for the financial year 2019-20 is Rs 88 lakh, which is less by Rs 71 lakh. Thereby, a loss in the form of commission to J&K Bank has been caused”. The FIR states that by performing acts of favouritism and nepotism in the course of his official duty, Parvez Ahmed, in connivance with the managing director of the insurance company, has dishonestly conferred pecuniary advantages upon IFFCO Tokio in lieu of the job to Asig Beigh and others.